Fed Likely to Stare Down Oil-Price Drop, and More

The latest on a hostage situation inside a chocolate shop in Sydney. Plus, why December may be one of the best times of the year to find a job. Photo: AP

This transcript has been automatically generated and may not be 100% accurate.

... good morning and welcome to the new sub I'm Simon console ... breaking news a hostage situation is continuing in Sydney Australia this out you looking at live pictures from Sydney Australian trade place up preparing to negotiate through the mind but Dom and holding hostages ... in a cafe hoping to and a ten cents each ... dream police are preparing to negotiate through the night with a gunman who is holding hostages in a cafe in central Sydney where large parts of the city renewal down Monday after least one gunman took hostages ... and placed an Islamic flag in the window ... sparking concerns a terrorist attack ... so far funny people have safety exit the cafe ... the all Australian police of not divulge any information on hostage taken ... his eyes and see his demands ... for any negotiations ... we are at the start continuing to ... secure or in my shoulder we doing all we can to ... bring this to a peaceful outcome we want this matter resolved peacefully and we will do will we need to to ensure that the standoff began at around nine forty five am Sydney local time ... after gunmen entered the Lindt Chocolate Cafe in maths science ... and halted the city's finance and shopping districts ... six hours in the standoff ... three people fled from Cafe ... one from a fire exits ... into the from from Joel ... now a latent two women left the cafe ... police didn't say whether the fund escaped or were released its ... TV camera shared additional hostages in the cafe ... two people held a black flag bearing the words of the Chicago ... an Islamic declaration of faith that these are sites to mosques daily ... the police said they don't yet know wanted the hostages were taken ... over by Prime Minister Tony Abbott indicated the offender is committed to the right to say that ... he sees eye to exist in peace ... it is profoundly shell ... that innocent people should be held hostage ... by ... now cousin ... climbing political ... faction ... time will have coverage on the hostage situations rabbit egg at doubly SJ live ... will be back in thirty seconds ... the Federal Reserve policy committee stocks an important two-day meeting tomorrow ... and then and they will face some overlapping challenges ... it's quite don't like what they've seen recently the list as Josh Zumbrun joins us now from Washington ... toss thanks obeying map ... they had a nice and ... now the Federal Reserve has eight a dual mandate one is stable amassed a stable price level which is stable inflation and aam full employment ... and right now the they call the set of overlapping consent still small ... the drop in oil rigs really interesting conundrum for the Fed because it pushes ... and that the way this is what's happening the passes that low prices is served as a little bit of a boost to growth see you expect the Fed to get to its employment go a bit faster you know people will have ... more money to spend on something other than gasoline that's typically good for the economy ... the other hand that the drop in gasoline prices is set to push measures of inflation ... very low and that the Fed already inflation is already running below the Fed's ... comfort level they really want two percent inflation or at ... the no one and a half or something and then did this drop in oil could pushing ... him down to zero by some estimates though ... it's can be significantly too low ... for what the feds come to go with them and creates a conundrum in terms of how they how they respond to this and tell us we have a EIA Tilson Ruhana Ahmed if oil goes to sixty dollars a barrel and inflation will be ... aam Marzilli positive five point two percent unemployment five point five percent ... and monthly job gains of now the up close to two hundred thousands ... but if we have forty dollars and all the barrel oil which nominees know on how tall the toll on inflation goes negative thoughts and to devise deflation By Sue its unemployment five point two percent and monthly change in private payrolls ... close to a quarter of a million every month net new jobs created so that is the conundrum is Nate's of folding price level is now seen as very touched ... by a rising jobs market is seen as very very debt ... that's exactly right one of the key things to watch is going to be the nations of ... you know the so called core inflation which is ... inflation but excluding the law and excluding ... our food prices ... the Fed why is that they can get it that they they see that if the underlying trend ... and if that major holds an in forecasting an eighteen businessman ... the forecasters from IHS coincides in core inflation is going to ... remain ever around two percent no matter what happens ... and if that's the case then the Fed probably didn't have confidence that this is ... really just about the oil price drop that that that the low inflation measures don't see no reason underlying weakness in the economy ... and so if that's the case they might fill comparable going ahead with the first interest rate increase sometime next year now what one other things we should point out is the forty dollars is the flaw foil it was back to back in that ninth in the late nineties it was down to ... around about ten dollars a barrel so this could go with the choir loft of that ... and if you like it could present even bigger problems for the fat ... that's right and and this one thing is different about this area is that you know fifteen years ago the U S produced very little oil compared to what it does today now I have that ... the fracking boom we've had huge new supplies brought on in the United States sell ... these to be the case of this is just basically a tax cut for people in Pakistan is less money and that ... gasoline calm but now this Asa does damage to a lot of ... that U S oil producers and you know there's a lot of ... us Johnson high wage U S jobs tied to its energy sector ... and so it's a much more mixed picture even for growth and a nice to be as much a complicated situation the ECB with a well it's it's only as a much more complicated situation thank you very much Telstra to Zambrano ... we will have a live coverage of that press conference of the resulting from the Fed's meeting at one fifty five ... of wands that once a dumb way well be that will have to be genius is to analyze what the Fed says don't miss out one fifty five K on the beest live ... we've also the look of mock it's now Michael Vick work lattice of MarketWatch to help us back ... to ... the morning ... money is always good to say you ... um we have breaking news let's tie with still teaches ... us the stockpickers or point to hire open looks like that the Wall Street might rebound after last week the Dow had its biggest weekly drop in more than three years ... aam one thing that's not a silly helping with that is the breaking news is um with the New York with Empire State manufacturing data come out ... and we miss expectations there ... was that WellPoint is eerily had a drop of time ... reports that some tenets of diffusion index of zero is the standstill negative that is and the negative this negative enemies this contract and ... probably also saying of the nation markets of the dipping down a bit we call them have these in the old race of which is some the Australian index now ... are laudable Boracay is to do with because the situation in Australia yet but that that that's what's been getting them of the blame for the action there on European markets have been out of ... town camp normal so that some of the ... economic data later this morning and Austral Production which is foreign born on the home builders index ... right after mass ... production looking for the zero point eight percent growth of the home builders and indexes for December reflecting a reading of fifty nine ... ok and later this week as I mentioned belly up ... aam we got the Fed's ... announcement on its monthly policy and the rest of his life to reach it the beest live ... now that you looking at three stalks to die the fuss the witches Berkshire Hathaway ... Press Ltd misses this cannot go in on Friday ... the Berkshire Warren Buffett's company are going about Charter brokerage this is an oil field service ... oil services logistics provider so ... everybody is selling oil related ... assets on his buying lead us to go stays single cement by one of those with their phones so one of those at ... the euphoric so that's and that's very much in line with how we think some of things ... come to stop PetSmart's ... threats to ... the Senate this is just a matter for the weekend aam it's being acquired by a ... it is a private equity buyout eight point two billion dollar deal less repeat of eight point two billion dollars for basically Chan is that stalks ... exactly aam but you know at the stores didn't perform well over the years this been shown to have some was the ... resistance of the recession ah so this is the largest private equity deal of the year overall I visit the firm's haven't ... been able to make as many deals and for them when there's gossip lofty stock prices care about is an awful lot of kids he puts up ... okay number three Honeywell which is some the ... of the very interesting industrial company ... yes they do consumer products some Aerospace Systems' all sorts of things so they have up to get the outlook this morning before the open ... aam ... assorted muted revenue outlook for twenty fifteen aam for the current year which is still wrapping up a course on ... the cut its revenue outlook little bit of a comfort thing is long lines of only modest GDP growth in most regions this year sold of caution statement from the big industrial bellwether ... ok great stuff here is the isthe thingy ran much of that work lattice ... of MarketWatch you think the holidays and the MBA would be the ideal time to land a job ... well you're wrong ... so why after the bright ... you'd think the holidays and EMEA would be the ideal time to land a job well due to wrong the mats according to executives such from robot off ... and joining us a senior executive director all the company will want all tonnage on the phone was sent was to discuss this poll thanks obeying map ... it ... is very early that I know what why is the new year ran into an okay time to try and find a job ... ETF did she have to look it ... that can ... be supplied by the government right now to know the Oakland Raiders come down over the past few years ... were we recovered and continued to recover ... there's quite a few jobs that are being ... advertised either I'm ... you know in the traditional outlined sense ... or strictly and social media ... also many opportunities for job seeker ... or for company ... to find people right now he had to take a contrarian view ... if you really do need people ... now is it time to ... spend time looking for them ... on line networking and ... social gatherings have been through the holiday ... mini ... employees are identified through either professional networking opportunity ... or ... or non professional or a social gathering ... now you're hopeless you say one thing we should do and which will be missed out on the company ... the holiday posse have something but oh boy that's ... why this a dot of that's ... well you never know who you're going to me ... it's an opportunity for you to ... get your department ... your functional area ... in actually need people around the fur ... will throw company ... those people could have opportunities for you ... so my advice is go to the ... go to the ... networking event go to the company party ... don't over indulge ... make sure that you're anti in ... and make sure you are interested ... since then you cry at some of the company's holiday party if you look in the drama comedy with that with that the goal with this that this all the wrongs why ... now that's not a crash in any party is that ... it's not about me he had to be an invited guest ... for now we know those losses would also take a lead in the retail business ... how to keep that show a path to the holiday period winds down and of the in the media ... well there's seasonal jobs but there's also ... all projects that are under underway right now either accounting finance complaints regulatory there's ninety products that are going on to your fortunate enough to come to get one of those products interim or temporary jobs ... and it's ... your current employee ... make sure that your control you dress the car ... you're known by its route The company ... and then you ... eat you know you deliver be on expectations ... and so what was thought cellphone time doing it sold the usual ... usual sorts of things do you think counting the worst is behind us now on the jobs front ... next to this to be determined a good ego only the economy's going to tell us what's going happen in the future ... but if the cast is any indicator in the past twelve to eighteen ... he's ... an companies are hiring people are finding opportunity new opportunities ... and actually it feels pretty structure on it this moment right now ... on tablets of the continues we appreciate getting up extra early for us almost all of ... the second sense from a robot Hoff ... I'm Simon Qassam on ... that's that